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BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
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Straits Inter Logistics posts profit jump from bunkering in 2017

Revenue from bunkering and oil trading skyrocketed 96.2 percent last year.



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Updated on 27 Feb 2018 12:32 GMT

Malaysia's Straits Inter Logistics Bhd, owner of marine fuel specialist Selatan Bunker, reports that its annual profit before tax from its bunkering and oil trading division was RM 4.39 million ($1.12 million) in 2017 - up 305.6 percent on the RM 1.08 million posted the previous year.

Significantly, the figure was higher than the company's overall profit before tax of RM 2.96 million; this was due to other divisions - particularly the investment holding segment - recording a loss. Straits' profit after tax was RM 2.71 million, up from RM 100,000 in 2016.

Revenue from bunkering and oil trading soared from RM 68.49 million in 2016 to last year's figure of RM 134.38 million - an increase of RM 65.88 million, or 96.2 percent.

The revenue figure represents 99.86 percent of the company's total sales in 2017.

Q4

The bunkering and oil trading segment's fourth-quarter (Q4) profit before tax of RM 1.64 million represented a rise of 1.05 million, or 181 percent, on the RM 581,000 achieved in Q4 2016, whilst revenue was RM 51.70 million - a year-on-year (YoY) increase of RM 33.433 million, or 183.0 percent.

Similar to the aforementioned annual results, Q4 profit from bunkering and oil trading was higher than the company's overall profit before tax of RM 968,000 (profit after tax was RM 797,000) due to losses incurred from the investment holding segment and 'others'. Also, sales generated from bunkering and oil trading made up 99.63 percent of overall company revenue.

Commenting on the company's performance, Straits said: "In line with the Group's plan to diversify its principal activities into oil bunkering and trading in oil product[s] to build a sustaining revenue stream, it has managed to increase its oil bunkering and trading revenue for the fourth quarter of 2017."

Recent developments and future plans

As Bunker Index reported last month, online equity broker, Rakuten Trade Sdn Bhd, selected Straits as its top stock choice for 2018.

The Bursa Malaysia-listed business - formerly known as Raya International Bhd - has now achieved a profit in the last six quarters, and during the first half of the year posted a cumulative net profit of RM 1.17 million.

Straits' subsidiary Selatan Bunker was launched in 2015. The company, which principally operates at the port of Pasir Gudang, commenced oil trading and bunkering via a collaboration agreement with Tumpuan Megah Development Sdn Bhd.

Two delivery vessels recently acquired by the company - Sturgeon 1 and Straits 1 - commenced bunkering operations at Pasir Gudang in Q4 2017.

In January, Straits entered into a non-binding agreement with Banle Energy International - a trader of bunker fuel - to explore potential business cooperation.

Regarding the company's plans for the future, Straits said in its latest financial report: "In the coming financial year, the Group will continue to expand its oil trading and bunkering business by increasing its deliverable tonnage capacities through increasing its vessels base by acquisitions of vessels or chartering third parties' vessels, along with strengthening its operational capabilities and broadening its geographical coverage to capture the growth opportunities in the oil bunkering industry in Malaysia and Asia region."






Related Links:

Equity broker selects Straits Inter Logistics as top stock pick for 2018
Straits Inter Logistics posts 63.4% revenue rise from oil trading and bunkering
Malaysian supplier expects 90% of future business to come from bunkering
Straits Inter Logistics Bhd.
Malaysia

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